会计英语Financial Statements教学课件

会计英语三.一BalanceSheetBalancesheetisthefundamentalandbackboneofthewholeaccountingandreportingsystem.Itpresentsapany’sfinancialpositionattheendofaspecifieddate.Sometimes,itisalsoreferredtoasthestatementoffinancialposition.Chapter三FinancialStatementsThebalancesheetmainlyincludesthreesegments:assets,liabilities,andowner’sequity.Accordingtotheliquidityofaccounts,itemsinbalancesheetaresubcategorizedandlistedseparately.Balancesheetcouldprovideinformationtousersaboutwhatthepanyownsandowes,andhowmuchisinvestedbyshareholdersorcreditors.三.一.一ponentsofBalanceSheetAssetsareresourcesthathavebeenacquiredthroughtransactions,ownedorcontrolledbyabusiness,andhavefutureeconomicvalue.Assetsareusuallysubdividedintocurrentassetsandnon-currentassets.一.AssetsCurrentassetsareassetsthatareexpectedtobeconvertedintocashorsoldoutorusedupwithinoneyearoronebusinessoperatingcycle.

Currentassetsusuallyinclude:①cashandcashequivalents,suchastreasurybillsandmoneymarketfunds;②receivables,suchasaccountsreceivable,notesreceivable,andotherreceivables;③inventories,inmanufacturingbusinesses,therearethreemajortypesofinventories:rawmaterials,workinprocess,andfinishedgoods;④marketablesecuritiesintendedtobeholdinashorttime;⑤prepaidexpenses,suchasprepaidinsurance,interests,rents,taxes,andotherprepaiditems.Onabalancesheet,currentassetitemsaredisplayedinorderofliquidityortheeasetobeconvertedintocash.(一)CurrentAssetsTheassetsthatcannotfeasiblybeturnedintocashwithinoneyear,oronebusinessoperatingcycle.Non-currentassetsusuallyinclude:①Fixedassets,suchasland,equipment,andbuilding.Theyarenormallyreportedatcostlessaccumulateddepreciation;②Intangibleassets,suchaspatents,trademarks,copyrights,franchisesandintellectualproperty.Theyarenormallyreportedatcostminustheamountpreviouslyamortized.(二)Non-currentAssetsLiabilitiesareobligationsofonebusiness.Theyareasourceofassetsandalsoaclaimagainstassets.Liabilitiesarepresentedonthebalancesheetbycashequivalentordiscountedpresentvalue.Liabilitiesareusuallysubdividedintocurrentliabilitiesandnon-currentliabilities.二.LiabilitiesCurrentliabilitiesareadebtsorobligationsthatareduewithinoneyear.Thefollowingitemsareallcurrentliabilities:一)shorttermdebt;二)payables,suchasaccountspayable,notespayable,interestpayable,salariespayable,taxpayable,etc.;三)unearnedrevenues;四)long-termdebtsduewithinoneyear.(一)CurrentLiabilitiesNon-currentliabilitiesarelong-termfinancialobligationsthatwillnotduewithinthecurrentaccountingyear.Non-currentliabilitiesusuallyinclude:一)Long-termborrowings;二)bondspayable;三)longtermnotespayable.(二)Non-currentLiabilitiesOwner’sequityisthemoneyattributabletoabusiness’owners,alsoknownas"assets".Owner’sEquity=totalassets-liabilities.representedonthebalancesheetwithtwoaccounts.(一)ContributedCapital(二)RetainedEarning三.Owner’sEquityBalancesheetisbuiltontheframeworkoftheaccountingequation:Assets=Liabilities+Owner’sEquity.Usuallybuiltintwodifferentformsaccountformreportform.三.一.二FormofBalanceSheetThebalancesheetinaccountformisdividedintotwosides.Allassetaccountsarelistedontheleftsideandallliabilityandowner’sequityaccountslistedontherightside.Thetotalamountofthesetwosidesmustbeequal.一.AccountForm续表Aone-columnstatementTheitemsofassetsarelistedonthetopofthestatement.Itemsfollowingthemareliabilitiesandowner’sequity.二.ReportForm续表续表Nomatterwhatistheform,thebalancesheetcanalwayspresentthefinancialconditionofabusinessbalancesheetcanalsorevealthechangeofapany’sfinancialstructureanditsdevelopingtrendbyparingwithformerstatements.Asummaryoftheoperatingresultsofabusinessduringanaccountingperiod.Itmeasuresapany’sfinancialperformanceaboutrevenuesgeneratedandexpensesincurred.Italsoshowstheprofitorlossincurredoveraspecificaccountingperiod,typicallyoverafiscalquarteroryear.Theexcessofrevenuesoverexpensesiscalledineorprofit.Aineforaperiodincreasestheowner’sequity(capital)fortheperiod,whilealossdecreasesitsowner’sequity(capital).三.二IneStatementInestatementisimportantitcouldshowtheprofitabilityofapanyduringthetimeintervalspecifiedinitsheadingitcanfacilitatedecision-makingbyparingandanalyzingtheinestatementInestatementshowsrevenues,expenses,gainsandlosses,ratherthancashreceipts(moneyreceived)andcashdisbursements(moneypaidout).Theponentsofinestatementwillvaryaccordingtotheplexityofbusinessactivities.Mostpanieswillhaverevenues,expensesandine三.二.一ponentsofIneStatement(一)RevenuesfromPrimaryActivitiesRevenuesfromprimaryactivitiesarereferredtoasoperatingrevenue.Differenttypeofpanieshasdifferentprimaryactivities.Accordingly,revenuesfromtheprimaryactivitiesofretailers,manufacturers,wholesalers,ordistributorsarecalledsalesrevenuesorsales;thoseofaservicefirmiscalledservicerevenuesorfeesearned.一.RevenuesandGainsRevenuesfromsecondaryactivitiesareoftenreferredtoasnon-operatingrevenues.Thesearetheamountsabusinessearnsoutsideofsellinggoodsandprovidingservices.(二)RevenuesfromSecondaryActivitiesGainsincludegainsfromthesaleofnon-currentassets,gainsfromnon-moaryassetsexchange,andgainsfromgovernmentgrants,andsoon.(三)Gains(一)ExpensesInvolvedinPrimaryActivitiesExpensesinvolvedinprimaryactivitiesareexpendituresthatincursoastoearnrevenuesfromoperatingactivities.Merchandisersandmanufacturerswillusuallyreporttheircostofgoodssoldseparatelyintheinestatements.Otherexpensesinvolvedintheirprimaryactivitieswilleitherbegroupedtogetherasoperatingexpensesorsubdividedintocategorieslikesellingexpenses,general&administrativeexpenses.二.ExpensesandLossesExpensesfromsecondaryactivitiesarereferredtoasnon-operatingexpenses.Depreciationoffixedassetsleasedoutisanon-operatingexpense(二)ExpensesfromSecondaryActivitiesLossessuchasthelossfromthesaleofnon-currentassets,lossfromnon-moaryassetsexchange,publicwelfaredonationexpenditure,andsoon.Takethelossonthesaleofnon-currentassetsforexample,whentheproceedsreceivedfromthesaleofanon-currentassetislessthanitsbookvalue,lossesoccur.(三)LossesProfitisthesurplusofrevenueafterdeductingvariouscostsandexpensesinanaccountingperiod.Profitincreasesowner’sequity.Tosomeextent,profitisdeterminedbyrevenuesandexpenses.TheprofitofcurrentperiodisreflectedinanaccountwhichiscalledIneSummary.Theamountofitsdebitsideistransferredfrombalancesofcostsandexpenseaccounts;theamountofitscreditsideisfrombalancesofrevenuesaccounts.AcreditbalanceofIneSummaryaccountmeansprofitandadebitbalancemeansloss.三.ProfitTherearetwomonformsofinestatements:single-stepinestatementmultiple-stepinestatement.三.二.二FormofIneStatement

Justliketheequation"ine=(Revenues+Gains)–(Expenses+losses)"describes,theinestatementofsingle-stepformusesonlyonesubtractiontoarriveattheine.Intheequation,alltypesofrevenue,suchassales,interestsearnedandrentrevenues,areaddedtogethertoshowthetotalrevenue.Meanwhile,allexpenses,includingthecostofgoodssold,sellingexpenses,general&administrativeexpensesandinetaxesexpenses,aregroupedtogethereither.一.Single-stepIneStatementThesingle-stepinestatementisrelativelysimpleandeasytoread.Inaddition,itemphasizestotalrevenuesandtotalexpensesasthefactorsthatdetermineine.However,adisadvantageofthisformisthatsomeusefulconceptssuchasgrossprofitonsalesandinefromoperationsarenotreadilyapparent.Itiswidelyusedbysmallbusinesses,andtheofficialformofinestatementinChinaisalsoamultiple-stepone.Themultiple-stepinestatementsegregatesoperatingrevenuesandoperatingexpensesfromnon-operatingrevenues,non-operatingexpenses,gains,andlosses.Themultiple-stepinestatementalsoshowsthegrossprofit(salesminusthecostofgoodssold).二.Multiple-stepIneStatementTherearethreestepstoarriveattheine.subtractcostofgoodssoldfromsalestoarriveatgrossprofit.subtractoperatingexpensesfromgrossprofittoarriveatoperatingine.binethenon-operatingrevenues,gains,non-operatingexpensesandlosseswiththeoperatinginetoarriveatineorloss.Then,theinewillbeclosedtoRetainedEarningsattheendoftheperiod.Thecashflowstatementreportsapany’scashinflowsandoutflowsduringaperiod.Cashflowstatementisveryusefultomanagersandexternaluserscashflowstatementplaysthefollowingimportantroles.(一)Clearlyreflectthecashmovementofabusinessoveraperiodoftime,providinginformationthatcanbeusedindecision-makingandenablingabetteruseofcash.(二)Helptofacilitatetheassessmentofliquidityofafirmaswellasitsabilitytogeneratecashandrepadebts.(三)helptoforecasttheamount,timingandcertaintyoffuturecashflows三.三CashFlowStatementTherearethreeponentsinacashflowstatementcashflowsfromoperatingactivitiescashflowsfrominvestingactivitiescashflowsfromfinancingactivities三.三.一ponentsofCashFlowStatementCashflowsfromoperatingactivitiesarecashinflowsandcashoutflowsfromtransactionsthataffecttheineofthepany.Cashinflowsaremeasuredbythecashreceivedfromcustomersorclients,includingunearnedrevenuesfromcustomers,pluscashfromsupportingactivitiessuchasinterestrevenueanddividendsrevenue.Cashoutflowsarethosedisbursementsincurredtoearncashinflows,suchascashpaidforpurchasingmaterialsormerchandises,wages,inetaxes,interestandsoon.一.CashFlowsfromOperatingActivitiesInvestingactivitiesaretheacquisitionsanddisposalsoflong-termassetsandinvestmentsinotherassetsthatarenotincludedincashequivalents.Examplesofcashinflowsfrominvestingactivitiesincludecashreceivedfromsaleoffixedasset,fromsaleofdebtorequityinvestments,andcollectionofprincipalonloanstoothers.Paymentsofpurchasingnon-currentassets,debtorequitysecuritiesofothers,andloansextendedtootherswillcausecashoutflows.二.CashFlowsFromInvestingActivitiesFinancingactivitiesarethosethatwillresultinchangesinsize,positionofcapitalandborrowingsofthepany.Cashinflowsfromfinancingactivitiescouldbeproceedsfromissuingdebtorequitysecurities,principalsreceivedfrombankloans.Thepaymentofprincipalsonbondsorbankloans,repurchaseoftheentity’sownsharesanddividendspaidtoshareholdersaremonexamplesofcashflowsfromfinancingactivities.三.CashFlowsfromFinancingActivitiesTherearetwomethodstoreportcashflowsfromoperatingactivitiesinthecashflowstatement,whicharedirectmethodandindirectmethod.However,themethodtoreportthecashflowsfrominvestingandfinancingactivitiesarethesameunderthesetwomethods.三.三.二PreparationofCashFlowStatementThestatementofchangesinequityrepresentsthechangesinowner’sequityofanentityduringanaccountingperiodsoastoenablereaderstoknowthesources(wheredoesitefrom)andoutlets(wheredoesitgo)ofequity.Therearetwotypesofchangesinowners’equity:(一)changesthatoriginatefromtransactionswithowners,suchastheissuingofnewshares,paymentofdividends,etc.;(二)changesthatresultfromchangesintotalprehensiveine,suchastheinefortheperiod,gainsonrevaluationoffixedassets,changesinfairvalueofavailableforsaleinvestments,etc.三.四StatementofChangesinEquityTypically,astatementofchangesinequitysummariesthechangesofthefollowingowners’equityitems.(一)Capitalstock,whichrepresentsthelegalcapitalofthepanyandequalstothetotalamountofsharesissuedmultiplybythebookvaluepershare.(二)Capitalreserve,whichincludeadditionalcontributedcapital(alsocalledsharepremium)andgainsorlossesthataredirectlyrecordedinowner’sequity.(三)Treasurystock,whichrepresentsthevalueofsharesrepurchasedbythepanyandhasn’tbeenwrittenoff.(四)Retainedearnings,whichiscreatedbythepanyandnotpaidoutasdividends.三.四.一ponentsofStatementofChangesinEquitymonchangesinowners’equity.(一)ine(loss)fortheperiodwhichincreases(decreases)retainedearnings.(二)Issuingofnewshareswhichincreasespaidincapitalandadditionalpaid-upcapital.(三)Paymentofcashdividendswhichdecreasesretainedearnings.(四)Repurchasingshareswhichincreasestreasurystockandaffectscapitalreserve.(五)Writingofftreasurystockwhichdecreasestreasurystock.(六)Issuingofstockdividendwhichincreasesmonstock,additionalpaid-upcapitalanddecreasesretainedearnings.(七)Increment(Impairment)ofvaluethroughrevaluationoffixedassetswhichincreases(decrease)capitalreserve.(八)Changesinvalueofavailable-for-salesecuritieswhichmayincreaseordecreasecapitalreserve.(九)Restatementoffinancialstatementswhichmayinitiatechangesinretainedearnings.三.四.二PreparationofStatementofChangesinEquityNotestofinancialstatementsrefertotheadditionalinformationprovidedbyapany’sfinancialreports.Inadditiontoquantitativeinformation,notescouldalsobequalitative.itisimportantforuserstocarefullyreadnotestothefinancialstatements.Asfarasponentsinvolved,notestofinancialstatementsusuallyincludeasummaryofsignificantaccountingpolicies,aswellasnotestofinancialinstruments,relatedpartytransactions,contingencies,andsubsequentevents三.五NotestoFinancialStatements三.五NotestoFinancialStatements三.五NotestoFinancialStatementsAccountingpoliciesincludespecificaccountingprinciplesandthemethodsofapplyingtheseprinciples.Theinformationmaybepresentedasthefirstnotetothefinancialstatements,orinaseparatesummaryofsignificantaccountingpolicies.Thedetailedaccountingpoliciesusedbyapanyincludethedepreciationmethod,acceleratedorstraight-linedepreciationmethod;theendinginventoryvaluationmethod,FIFOorweightedaveragemethod;themethodusedtoreflecttheperformanceofconstructions,pletecontractorpercentage-of-pletionmethod,andsoon.Changesinaccountingpoliciesandestimatesaswellastheirimpactonearningsandequityalsoneedtobedisclosedinnotes.三.五.一AccountingPolicyFinancialinstrumentsincludefinancialassets,financialliabilities,andequityinstrumentsDetailsofthemshouldbereflectedinthenotes.Thesedetailsincludethemaximumcreditriskandtheconcentrationofsignificantcreditriskscarriedbyfinancialassets;theprincipals,datesofmaturity,interestrates,andotherinformationrelatedtothepredictingoffuturecashflowsontheseitems;thefairvalueofeachcategoryoffinancialassetsandliabilitiesunlessthefairvalueisimpossibletobedetermined.三.五.二FinancialInstrumentsTransactionsbetweenafirmanditsshareholder,management,ormembersoffamiliesofshareholdersofmanagementareallrelatedpartytransactions.Anycontractualarrangementswithrelatedparties,aswellasanycontingenciesinvolvingrelatedparties,shouldbedisclosed.三.五.三RelatedPartyTransactionsAcontingencyisaneventortransactionthatwilloccuronlyifsomeothereventhappens.Acontingentlossshouldbeaccruedinthefinancialstatementswhenbothofthefollowingconditionsaremet:(一)Itislikelythatafutureeventwillconfirmthatanassethasbeenimpairedoraliabilityincurredatthebalancesheetdate.(二)Theamountofthelosscanbereasonablyestimated.三.五.四ContingenciesSubsequenteventsthatareimportantandtakeplaceaftertheendofafiscalyearbutbeforethedateofreleasingfinancialstatementsmustbedisclosedinfinancialreports.Therearetwotypesofsubsequentevents.Eventsthatprovidefurtherinformationofconditionsexistingattheendofafiscalyear.Theseeventsrequireanadjustmenttofinancialstatements.Eventsthatareindicativeofconditionsarosesubsequenttothebalancesheetdate.Theseeventsmayrequiretobedisclosedasanote.三.五.